Bitcoin Liquidation Indicator Shows Systemic Pressure on Long Futures Positions

Latest market data shows that Bitcoin futures liquidation pressure has reached very high levels. According to a report from Odaily, long positions experienced a 97% clearance yesterday, a figure that reflects an extraordinary level of liquidation activity in the market. While prices remain volatile, Bitcoin still recorded a 1.78% increase in the last 24 hours.

Long Position Liquidation Rate Indicates Ongoing Pressure

The 30-day liquidation dominance indicator has reached an average of 31.4%, a significant increase that indicates nearly all forced liquidation activity in the market is coming from buyers who are forced to exit their positions. This systemic pressure has affected long holders over the past month, creating a wave of consecutive sell-offs.

This phenomenon shows that despite price declines and a series of forced liquidations, demand to open long positions remains high. This is evidenced by the sustained positive funding rate for perpetual contracts.

High Funding Rate Indicates Strong Market Demand

The perpetual funding rate for Bitcoin was recorded at 43.2% annually yesterday, a figure still well below the peak seen in October to November last year—when it exceeded 100%. Although it has decreased, this level still indicates relatively strong bullish expectations among traders.

An important question is why the funding rate remains positive amid massive liquidations. The answer lies in the fact that buyers continue to open new positions or existing positions have not been fully liquidated. This phenomenon creates a complex market dynamic.

Deleveraging Risks Still Loom in the Derivatives Market

This situation indicates that the Bitcoin derivatives market has not yet completed its liquidation cycle. The funding rate remaining in positive territory increases the risk of further deleveraging, as long positions continue to recover rapidly while still carrying high funding costs.

Currently, indicators do not show a shift toward neutral or negative zones, meaning market expectations are still dominated by bullish sentiment. However, the combination of high liquidation levels and positive funding rates reflects a fragile balance, with further volatility risks looming ahead.